My previous EUR/USD signal on 9th December was not triggered.
Today’s EUR/USD Signals
Risk 0.75%.
Trades may only be entered prior to 5pm London time today.
Short Trade Ideas
- Go short following a bearish price action reversal on the H1 timeframe immediately upon the next touch of $1.1664, $1.1682, or $1.1694.
- Put the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trade Ideas
- Go long following a bullish price action reversal on the H1 timeframe immediately upon the next touch of $1.1623, $1.1618, or $1.1591.
- Put the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
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EUR/USD Analysis
In my previous EUR/USD analysis published yesterday, I thought that the EUR/USD currency pair was likely to give its best opportunity as a short trade from $1.1664.
I was almost correct, with the high of the day just a few pips below that level.
The technical picture now has become more bullish, with a double bottom chart pattern printing rejecting the supportive zone between $1.1623 and $1.1618. The price is now rising from there, and it looks like a long trade here is still a possibility, targeting the nearest key resistance level, which sits at $1.1664.
If the price breaks below $1.1618 and gets established down there, that would be a notably bearish sign.
Conversely, if the price breaks above $1.1664, that will be an even more bullish sign. A break above $1.1650 will also take the price out of the bullish pennant in the pattern of a descending linear regression analysis.
I think the price is likely to rise over the next few hours, but as we approach the Fed’s policy meeting later in the day during the New York session, price action will likely get more choppy and rangebound.
There is nothing of high importance due today regarding the Euro. Concerning the USD, there will be a release of Employment Cost Index data at 11:30am London time, followed by the Federal Funds Rate, FOMC Economic Projections, and the FOMC Statement at 7pm.
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